Deux Healthy Cookie Dough
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 12, 2021
Asking For:
$300,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Deux offers enhanced cookie dough packed with vitamins and functional ingredients, making it a healthier alternative to traditional cookie dough.
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Background Story
Sabeena Ladha’s journey from a childhood surrounded by junk food in her family’s Dallas, Texas gas station to her current residence in health-conscious Los Angeles, California, played a pivotal role in the inception of Deux. Her career took a twist when she worked for a prominent food and beverage CPG company, where she realized the need for healthier options in the market. Driven by this vision, she transitioned into venture capital, seeking to make a difference in the industry.
In June 2020, Sabeena embarked on her entrepreneurial path, launching Deux. Despite her newcomer status, the company rapidly gained traction in the market. Within a short period, from October to December, Deux raked in an impressive $70,000 in revenue. To date, the company has amassed a total revenue of $630,000, showcasing its potential for growth.
One significant milestone was securing approval for distribution in approximately 40 Whole Foods stores, signifying Deux’s appeal to health-conscious consumers. With a competitive price point of $15 per jar, Deux aims to provide a tasty yet nutritious alternative to traditional cookie dough, reflecting Sabeena’s dedication to healthier living and her remarkable entrepreneurial spirit.
The Product
Deux’s cookie dough is a testament to its commitment to health-conscious consumers. Crafted with a focus on clean and wholesome ingredients, the dough includes staples like oats, almond butter, flaxseed, and coconut sugar. What sets Deux apart is its incorporation of functional ingredients, such as zinc and vitamin C, which bestow the product with added health benefits.
This versatile treat can be savored in two delightful ways: consumers can indulge in it straight from the jar, relishing the rich, raw cookie dough experience, or they can bake it into mouthwatering, ooey-gooey cookies, ensuring a satisfying treat for all preferences.
Moreover, Deux caters to a wide range of dietary preferences, as it is both gluten-free and vegan. This inclusivity makes it accessible to a broad audience of health-conscious and ethically-minded consumers.
Behind this delectable product is a well-balanced business model. It costs the company $3.70 to produce each jar of cookie dough, while the product is competitively priced at $15 per jar when sold online. This pricing structure not only ensures a healthy profit margin but also makes Deux an appealing option for those seeking a guilt-free indulgence without compromising on taste or nutrition.
How It Went
The company’s position before Shark Tank
Deux’s performance in the market, despite being a relatively new entrant, has been nothing short of remarkable. With a revenue of $630,000 achieved within a short time frame, the company is poised for impressive growth. The projected revenue of $1.2 million for the year underscores its potential for expansion and market penetration.
One significant achievement for Deux is securing approval for distribution in 40 Whole Foods stores. This accomplishment is a testament to the product’s appeal and underscores the demand for healthier indulgence options among consumers. In terms of funding, Sabeena Ladha’s ability to secure $1 million in funding at a $6 million valuation reflects investor confidence in the company’s vision and potential for success. This funding provides the necessary capital to support growth initiatives and expand market reach.
Furthermore, the business model employed by Deux exhibits strong profitability. With a cost of production at $3.70 per jar and a competitive retail price of $15 per jar online, the company enjoys a favorable margin that supports sustainable operations and future investments. In summary, Deux’s impressive revenue figures, distribution expansion, successful fundraising efforts, and favorable business model all point towards a promising future for the company in the health-conscious snack market.
The Negotiations:
During the negotiations on “Shark Tank,” Sabeena Ladha faced a panel of investors with varying interests and preferences. Mark Cuban expressed admiration for her entrepreneurial spirit and offered $300,000 for a 15% equity stake, which she initially accepted. However, she later attempted to negotiate for a 12.5% equity stake, but Mark declined this counteroffer.
Other Sharks, including Kevin O’Leary, Lori Greiner, and Robert Herjavec, acknowledged Sabeena’s impressive journey but felt that the product didn’t align with their personal tastes or investment portfolios, leading them to decline the opportunity. Nirav Tolia showed interest in Deux but ultimately passed on making an offer. Sabeena then made a counterproposal to Mark, suggesting a 10% equity stake and offering 5% AdvisorShares, which he also declined. Mark firmly stuck to his initial offer of $300,000 for 15% equity.
Despite Sabeena’s efforts to secure a deal, no agreements were reached. The negotiation process showcased the challenges of finding the right investor-match for a unique product like Deux. Sabeena’s willingness to negotiate and the Sharks’ insights into their own preferences and expertise highlighted the competitive nature of the show and the difficulty of securing investment, emphasizing the importance of persistence and adaptability in the world of entrepreneurship and investment.
